TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 1860
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....l terms. 2. That the learned A.O. has erred in law and on facts in making the addition without bringing on record any material to substantiate that the share application money emanated from the coffers of the appellant. 3. That the learned Assessing Officer has erred in charging interest u/s 234A amounting to Rs. 43,348/- and u/s 234B amounting to Rs. 30,56,047/-." 2. The facts are that order dated 29.12.2010 was passed under sections 143(3)/147 of the Act at a total income of Rs.59,07,149/-, wherein an addition of Rs.59,80,000/- was made on account of unexplained cash credits in the form of share application money received during financial year 2002-03, invoking the provisions of section 68 of the Act, in respect of the following p....
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....e., before the date of commencement of the assessee's business, as evident from APB 32-143, i.e., the documents/confirmations filed; and that the ld. CIT(A) has erred in relying on decisions where the amounts were received after the start of business, whereas in the assessee's case, the amounts were received before the commencement of business. 6. On the other hand, the ld. DR has placed strong reliance on the impugned order. It has been contended that as correctly observed by the ld. CIT(A), the assessee's case ought to be perused in the light of its peculiar facts. 7. Heard. The ld. CIT(A) while dealing with this issue, has observed as follows: "6.2 As regards the assessee's reliance in the decision of Hon'ble Supreme Court in the....
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....assessee is a firm. The assessee commenced business on 27th November, 1961. The assessment year is 1963-64, for which the previous year ended on 27th October, 1962. In the course of the assessment proceedings, the ITO found certain cash credits appearing in the books of the assessee. The explanation offered by the assessee was not accepted by the ITO. He, therefore, added these cash credits in the assessment. , The assessee filed an appeal. The AAC found that the ITO made a mistake in the addition of those amounts and he, therefore, corrected the amount. After making such correction the AAC was also unable to accept the explanation offered by the assessee and, therefore, confirmed the addition to the extent of Rs. 16,300. The asses....
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....khivala's Income Tax Act, at page 610, s. 68 under the heading "Cash credit on first day of accounting year"). In the premises, we answer the question- in the negative and in favour of the revenue. 6.3 Further, the coordinate Bench of Hon'ble ITAT, Hyderabad 'A' Bench Hyderabad, vide its decision rendered in the case of Shri B. Srinivasulu vs. ITO Ward 6(4), Hyderbad ITA No. 647/Hyd/2009 AY 2005-06 Date of Decision 04.06.2010, has followed the above decision of Hon'ble Calcutta High Court. The Hon'ble ITAT has held as under:- "We have carefully gone through the judgment of the Calcutta High Court in the case of Ashok Timber Industries (supra). The Calcutta High Court after considering the judgment of Apex Court ....
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....eat the same as unexplained u/s 68 of the Act. While looking to the facts of the instant, appeal, it is thus seen that the AO was well within his powers to examine and call for details and based upon the enquiries conducted, he could have .proceeded to add the assessee's receipt of share application money, even if the year involved was the first year, of assessee's business operations. Thus this contention of assessee is liable to be rejected. 6.5 Thus, in view of the foregoing and while considering the facts of the case in entirety, I am, therefore, of the considered view that the AO while farming the assessment in the assessee's case in pursuance of the directions of the Hon'ble ITAT has provided adequate opportunity to....
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....essee started its business operations from 28.02.2003. All the share application money, undisputedly, was received before this date. Question is whether it can be treated as unexplained. In 'CIT vs. Bharat Engineering Construction Company', 83 ITR 187 (SC) (supra) also, as in the present case, the amounts were received before the commencement of the business. The Hon'ble Supreme Court held that as such, they could not be added as the assessee's income. 9. In 'CIT vs. Ashok Timber Industries', 125 ITR 336 (Cal.), relied on by the ld. CIT(A), the amounts were received within one month of the commencement of the business. 10. In 'Shri B. Srinivasulu vs. ITO', order dated 04.06.2010, passed by the Hyderabad Tribunal in ITA No.647/Hyd/2009, fo....